Sangeeta Sunil Jolapure Vs ITO (ITAT Panaji)
₹7 Lakh Recurring Deposit Explained from Disclosed Presumptive Business Receipts; Panaji ITAT Deletes Section 69 Addition
The assessee declared business income under section 44AD, disclosing gross receipts of ₹18,37,200 for AY 2016-17. In reassessment, the AO determined total income at ₹21.55 lakh after adding:
- ₹7 lakh invested in a recurring deposit as unexplained investment under section 69; and
- ₹10,39,735 received from VKP Urban Cooperative Society as income from other sources.
The ITAT observed that the availability of gross business receipts of ₹18.37 lakh had not been disputed by the AO. Therefore, the assessee’s explanation that the ₹7 lakh recurring deposit was funded from those disclosed receipts was accepted, and the addition under section 69 was directed to be deleted.
Regarding ₹10.40 lakh allegedly received as interest from the cooperative society, the Tribunal upheld the remand but restricted the fresh proceedings to this issue alone. The AO was directed to decide it after granting a reasonable opportunity of hearing.
For AY 2018-19, the dispute related to:
- ₹25,31,000 credited in the assessee’s bank account and added under section 69A; and
- ₹10,26,775 treated as interest income.
The assessee contended that the bank credits represented amounts received from family members and produced supporting documents. Since these documents required verification, the ITAT restored both additions to the AO for fresh adjudication limited to these two issues.
